Search Recharge

LOG IN TO Recharge

Log in or start a trial to access this article

Wind and PV 'dominate future of power' as costs plunge: BNEF

Ever steeper wind and solar cost declines will see the two renewable sources “dominate the future of electricity” and attract more than $6 trillion of investments by 2040, says latest research from analysts at Bloomberg New Energy Finance (BNEF).

The latest BNEF New Energy Outlook 2017 sees onshore wind’s levelised cost-of-energy (LCOE) plunging by 47% by 2040, adding to a 30% fall over the last eight years.

Offshore wind does even better with a 71% LCOE decrease by the same date “helped by development experience, competition and reduced risk, and economies of scale resulting from larger projects and bigger turbines”, said BNEF in a statement.

Solar’s cost of electricity is set to drop another 66% by 2040, adding to its own spectacular decreases since 2010 and broadening its role as a low-cost competitor to coal.

Wind is forecast to attract $3.3tn of investments and solar $2.8tn, increasing their total capacities four-fold and fourteen-fold respectively.

That gives them the lion’s share of the $7.4tn BNEF expects to be invested in new renewable generation by 2040 – itself representing 72% of spending on all new generation capacity.

The rapid progress of renewables will help decarbonise the world's power system quicker than expected, with emissions now slated to peak in 2026 and to be 4% lower in 2040 than in 2016.

Massive investment by China and India – between them a “$4tn opportunity for the energy industry” – battery storage and the rise of electric vehicles will all be key factors driving clean energy forward, according to BNEF.

Seb Henbest, lead author of NEO 2017 at BNEF, said: “This year’s report suggests that the greening of the world’s electricity system is unstoppable, thanks to rapidly falling costs for solar and wind power, and a growing role for batteries, including those in electric vehicles, in balancing supply and demand.”

Premium subscription at less than $5 per business day!

Stay tuned with our free daily newsletter

Be in the know of the most important headline every day

Wind and PV 'dominate future of power' as costs plunge: BNEF

Ever steeper wind and solar cost declines will see the two renewable sources “dominate the future of electricity” and attract more than $6 trillion of investments by 2040, says latest research from analysts at Bloomberg New Energy Finance (BNEF).

The latest BNEF New Energy Outlook 2017 sees onshore wind’s levelised cost-of-energy (LCOE) plunging by 47% by 2040, adding to a 30% fall over the last eight years.

Offshore wind does even better with a 71% LCOE decrease by the same date “helped by development experience, competition and reduced risk, and economies of scale resulting from larger projects and bigger turbines”, said BNEF in a statement.

Solar’s cost of electricity is set to drop another 66% by 2040, adding to its own spectacular decreases since 2010 and broadening its role as a low-cost competitor to coal.

Wind is forecast to attract $3.3tn of investments and solar $2.8tn, increasing their total capacities four-fold and fourteen-fold respectively.

That gives them the lion’s share of the $7.4tn BNEF expects to be invested in new renewable generation by 2040 – itself representing 72% of spending on all new generation capacity.

The rapid progress of renewables will help decarbonise the world's power system quicker than expected, with emissions now slated to peak in 2026 and to be 4% lower in 2040 than in 2016.

Massive investment by China and India – between them a “$4tn opportunity for the energy industry” – battery storage and the rise of electric vehicles will all be key factors driving clean energy forward, according to BNEF.

Seb Henbest, lead author of NEO 2017 at BNEF, said: “This year’s report suggests that the greening of the world’s electricity system is unstoppable, thanks to rapidly falling costs for solar and wind power, and a growing role for batteries, including those in electric vehicles, in balancing supply and demand.”